Vana World, a Japanese private equity fund focused on real estate, is in talks with the Korea Trade and Investment Promotion Agency to invest KRW 3 trillion ($2 billion; €1.5 billion) in the New Songdo City zone, according to media reports.
The Japanese fund, which is reportedly taking advantage of the South Korean won falling against the Japanese yen, will sign a letter of intent with the agency this week. If the deal goes through, it would be the single largest Japanese investment in South Korea. Vana World is considering building a complex of commercial buildings, hospitals and schools, the reports said.
New Songdo City is a planned international business centre to be developed on reclaimed land along Incheon’s waterfront. It is part of the Incheon Free Economic Zone, located on the west coast of South Korea, near the country’s capital Seoul.
The city is estimated to cost more than $40 billion and is expected to be completed in 2015. Its plan includes 50 million square feet of office space, 30 million square feet of residential space, 10 million square feet of retail, five million square feet of hotel space and 10 million square feet of green space.
Vana World could not be reached for comment.
Korea Trade and Investment Promotion Agency did not respond to requests for comment at press time.